April 22, 2024

What Investors Need to Know

In the latest trading session, Cummins (CMI) closed at $239.57, marking a -0.42% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw a decrease of 0.56%.

Prior to today’s trading, shares of the engine maker had gained 7.33% over the past month. This has outpaced the Auto-Tires-Trucks sector’s gain of 3.74% and the S&P 500’s gain of 5.24% in that time.

The investment community will be closely monitoring the performance of Cummins in its forthcoming earnings report. The company’s upcoming EPS is projected at $4.42, signifying a 2.21% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.07 billion, indicating a 3.89% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.67 per share and a revenue of $33.59 billion, signifying shifts of +30.09% and +19.66%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Cummins. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Cummins is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Cummins is currently being traded at a Forward P/E ratio of 12.23. This represents no noticeable deviation compared to its industry’s average Forward P/E of 12.23.

Also, we should mention that CMI has a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Automotive – Internal Combustion Engines industry stood at 1.28 at the close of the market yesterday.

The Automotive – Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cummins Inc. (CMI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *